For owners abroad
TDS on rent paid to an NRI
If you live abroad and rent out a home in India, your tenant has to deduct tax from every month’s rent before paying you, deposit it with the government, and give you a certificate for it. Most tenants have never done it. Here is what each of you has to do, and what it comes to.
- Tenant deducts each month
- ₹12,480
- Reaches your NRO account
- ₹27,520
- TDS over 12 months
- ₹1,49,760
Form 16A your tenant owes you, April 2026 to March 2027
| Quarter | TDS | Form 16A due by |
|---|---|---|
| Apr–Jun | ₹37,440 | 15 Aug 2026 |
| Jul–Sep | ₹37,440 | 15 Nov 2026 |
| Oct–Dec | ₹37,440 | 15 Feb 2027 |
| Jan–Mar | ₹37,440 | 15 Jun 2027 |
Each month’s TDS is paid to the government by the 7th of the next month (March’s by 30 April). Surcharge applies on top if your total Indian income is over ₹50 lakh.
The short version
- The tenant deducts it, not you. On rent paid to a non-resident, the tenant must deduct TDS from every payment, whatever the amount. The ₹50,000-a-month threshold you may have heard of applies only to resident landlords.
- The usual rate is 31.2% of the rent: 30% income tax plus 4% cess. Surcharge is added on top if your total Indian income is over ₹50 lakh.
- It’s usually more than your actual tax. You’re taxed on rent less a 30% standard deduction and the property tax you pay, at your own slab rates, but TDS is taken on the full rent. The difference comes back as a refund when you file, or you can ask for a lower-rate certificate in advance.
- Your proof is Form 16A.The tenant gives you one for every quarter. Without it, you can’t easily show the tax was paid.
What the tenant has to do
- Get a TAN(Tax Deduction Account Number). Their PAN isn’t enough. They apply once, online, and it takes a few days.
- Deduct TDS from each month’s rent and pay you the rest.
- Deposit the TDS by the 7th of the next month (March’s by 30 April), against your PAN.
- File a quarterly TDS return for payments to non-residents, due 31 July, 31 October, 31 January and 31 May.
- Give you Form 16Afor each quarter, within 15 days of that return’s due date: by 15 August, 15 November, 15 February and 15 June.
A tenant who doesn’t deduct, or deducts and doesn’t deposit, can be charged the tax itself plus interest and penalties. It’s worth saying so, kindly, before they sign: most simply don’t know.
What you should do as the owner
- Give the tenant your PAN and your NRO account details, and put the TDS duty in the rental agreement. Our free NRI rental agreement has the clause.
- Check each quarter that the TDS shows against your PAN in your tax statement (Form 26AS / AIS on the income-tax portal), and that you have the Form 16A.
- File an Indian tax return for the year: it’s how you claim the TDS and get any excess back.
- If TDS at 31.2% is much more than your real tax, apply for a lower-deduction certificate before the year starts. Your tenant then deducts at the rate it names.
- Moving the rent out of India? Your bank will ask for a declaration (and often a CA’s certificate) showing the tax has been dealt with. Keeping the Form 16As makes that quick.
The mistake that costs NRIs most
A tenant who pays the full rent and deducts nothing. It feels like a kindness, until your tax return shows rent with no TDS against it and the department asks why. By then the tenant may have moved out. Settle it in the agreement, on day one.
General information as of October 2026, not tax advice. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered its sections (TDS on payments to non-residents was Section 195), so ask a CA for the current section and form numbers. Rates and dates change with each year’s Finance Act.
Houscade works this out on every month’s rent, reminds your tenant when each Form 16A is due, and keeps the certificates with the property, alongside the rent, the agreement and the condition reports. See how it works for owners abroad.